Standard and Poor's confirms stable outlook for Adler Group's credit rating, reflecting performance of Adler's business

- Standard and Poor's confirms "BB" credit rating and stable outlook for Adler Group

- Adler's asset valuations significantly above previous year according to initial calculations

- Half-year results to reflect strong underlying business performance

- Publication of half-year financial statements on 31 August to provide further details

Berlin, 11 August 2021 - Adler Group SA ("Adler") is pleased to announce that the international rating agency Standard and Poor's (S&P) has affirmed the "BB" credit rating of Adler Group S.A. and confirmed the outlook for the rating as "stable". S&P expects the operating performance of Adler's business to be stable over the next 12 to 18 months, and also noted the group's positive refinancing position. The strategy set by Adler, as a leading German fully integrated residential real estate company, is now paying off over the coming quarters.

Operating cashflow has been improved due to positive development in rents, vacancy reduction, OPEX-optimization and the improvement of financing conditions. As forecast, the sales of condominiums and non-core assets has progressed accordingly, and the restructuring and reorganization of Consus and its projects are well on track.

S&P has assessed Adler's development positively, a prognosis that is also reflected in the expected improved ESG rating which will be soon communicated to the market.
These positive improvements are envisaged to continuously create sustainable value to all stakeholders of Adler.

Maximilian Rienecker, Co-CEO of the Adler Group, explains: "We are very pleased with the position of the business and our financial situation. Despite the Corona pandemic, the residential rental and management business has performed extremely well. In addition, our liquidity position remains at a consistently high level. This performance will be demonstrated in our half-year results, due to be published on 31 August."

The appraised value of Adler's real estate portfolio, according to preliminary calculations, has increased by 6.5 per cent in the first half of the year versus the year end of 2020, highlighting the significant embedded intrinsic value of its housing stock. In particular, there were positive catch-up effects in Berlin after the rental cap was cancelled and considered unconstitutional by the German courts. Adler is expecting an increase of 7 per cent in the urban area of Berlin, and outside the capital an increase of around 5.9 per cent, based on initial preliminary calculations.

Thierry Beaudemoulin, Co-CEO of the Adler Group explains: "These preliminary figures are proof of the great progress we have made in the management and administration of our assets as well as of the positive market development. Based on the current market dynamics, we are confident that we will achieve approximately a 10 per cent increase in the value of our higher-yielding assets over the year as a whole."

Adler interim financial statements for the first half of the year will be published on 31 August. The results presentation will include a detailed list of all receivables and an in-depth analysis of the valuations of its real estate holdings and financial instruments.

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